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    Background of fuel tax credits

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    On 1 July 2006, fuel tax credits were introduced for fuel used in heavy vehicles and in a range of other business activities.

    Eligibility was expanded on 1 July 2008 to include (at a half rate) taxable fuels used in other business activities, machinery, plant and equipment as part of a gradual implementation. From 1 July 2012, these activities became eligible for the full fuel tax credit rate, but the rate for most is reduced by a carbon charge.

    From 1 December 2011, excise or customs duty applies to gaseous fuels – that is, liquefied petroleum gas (LPG), liquefied natural gas (LNG) and compressed natural gas (CNG) – for transport use in most instances. From this date, fuel tax credits became available for duty paid gaseous fuels acquired, manufactured or imported for use in eligible off-road business activities.

    Non-transport use of gaseous fuels is eligible for fuel tax credits in certain circumstances.

    From 1 July 2012, under clean energy laws a carbon charge generally applied to certain taxable fuels that are combusted. Also, there were changes to non-transport gaseous fuels that affected fuel tax credit rates for certain activities.

    From 1 July 2013, carbon charge amounts increased and there were other changes to non-transport LPG and LNG that affected fuel tax credit rates for certain activities.

    From 1 July 2014, the carbon charge was repealed.

    Find out more

    If you are claiming fuel tax credits for fuel acquired from 1 July 2014, refer to Fuel tax credits for business (current version).

    End of find out more
      Last modified: 19 Sep 2014QC 41272